Accountant Professional Liability Insurance

While Accountants Professional Liability Insurance provides coverage for many claims, there are some situations and types of losses that it typically does not cover. Here are some examples of what may not be covered under an Accountants Professional Liability Insurance policy:

1. Criminal activity: If an accountant is accused of committing a crime, such as embezzlement or fraud, the policy will not provide coverage for any resulting legal or financial losses.
2. Intentional wrongdoing: If an accountant intentionally provides misleading information or engages in unethical behavior, the policy may not provide coverage for any resulting financial losses or legal claims.
3. Property damage: Accountants Professional Liability Insurance is designed to cover financial losses suffered by clients. It typically does not provide coverage for physical property damage or bodily injury claims.
4. Breach of contract: If a client sues an accountant for breach of contract, such as failing to meet a deadline or delivering subpar work, the policy may not provide coverage unless the claim involves allegations of negligence or errors.
5. Punitive damages: If a court awards punitive damages, which are meant to punish the defendant rather than compensate the plaintiff, the policy may not provide coverage.
6. Prior acts: Some policies may have a retroactive date, which means that claims arising from work performed before the policy’s start date may not be covered.

It’s important to carefully review the terms and conditions of an Accountants Professional Liability Insurance policy to fully understand what is covered and what is excluded.